Shareholders of SUNU Assurances Nigeria Plc have endorsed a set of special resolutions authorising the insurer to embark on a comprehensive capital-raising programme to meet new regulatory benchmarks introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
At the Extraordinary General Meeting (EGM) in Lagos, shareholders approved the company’s plan to raise N9 billion in fresh capital through private placements, rights issues, public offers, or any structure the Board considers suitable.
The resolutions also empower the Board to establish capital-raising programmes in tranches, determine pricing and structure subject to regulatory approval, appoint necessary advisers, execute required documentation, and increase the company’s share capital to accommodate the new allotments.
Chairman of SUNU Assurances, Kyari Abba Bukar, said the recapitalisation became imperative following the enactment of NIIRA 2025, which raised the Minimum Capital Requirement (MCR) for non-life insurers from N3 billion to N15 billion. He noted that NAICOM has set July 30, 2026 as the compliance deadline.
“As of September 30, 2025, the company requires N9 billion to meet the MCR. This highlights the urgent need for strategic action to safeguard financial stability and ensure regulatory compliance,” Bukar said.
He described the recapitalisation as a critical step that will strengthen SUNU’s balance sheet, enhance underwriting capacity, attract new investments, and reinforce the company’s market position. He also disclosed that SUNU is addressing its free-float deficiency on the NGX as part of the process.
“Free float is essential for maintaining liquidity and complying with NGX listing standards. We are evaluating our capital structure to align with this requirement,” he added.
Speaking after the meeting, Bukar reaffirmed SUNU’s strong dividend performance, noting that the company has paid dividends consistently for four years.
Managing Director/CEO Samuel Ogbodu revealed that the SUNU Group, which currently holds an 83% stake, plans to reduce its shareholding to 70% to accommodate more Nigerian investors.
“What we have done today is crucial for transparency. This is a publicly quoted company, and everything must be done with shareholders’ consent,” Ogbodu said.
He added that SUNU remains an attractive investment:
“Our share price started at 60 kobo, reached N11, and now trades between N4.70 and N5.70. I am confident that within six months, the price will double. We offer value through dividend and capital appreciation.”
